A Non-Resident Indian or NRI Fixed Deposit is an excellent tool for NRIs, who live and work overseas, to invest their money in India. These are of three types: Non-Resident Ordinary or NRO FD, Non-Resident External or NRE FD, and Foreign Currency Non-Resident or FCNR Deposit.

NRE Fixed Deposit: what is it?

NRIs can open an NRO FD jointly with other NRIs and resident Indians to invest and grow their income in India. An FCNR Deposit allows NRIs to open and hold a deposit in any foreign currency permitted by their bank. Meanwhile, an NRE FD is the third NRI FD, enabling NRIs to invest the foreign currency earnings they earn overseas.

NRE FDs are relatively popular options among NRIs who want to invest in India. They are packed with attractive features and benefits, enabling investors to deposit their foreign currencies in India and earn reasonable returns over a fixed tenure. Moreover, NRIs can open an NRE FD online anywhere and anytime without hassle.


Some essential features of an NRE Deposit include the following:

Deposit Currency

An NRE FD enables NRIs to invest their foreign currency earnings in India to earn good returns. The principal amount invested is automatically converted into Indian Rupee or INR and maintained in the same denomination throughout the tenure of the deposit.


Only NRIs of Indian origin and nationality can invest in an NRE Deposit. You can open the FD independently or jointly with one or more NRIs. In addition, you must have an NRE Savings Account to open such a deposit.

Interest rate

By investing your money in an NRE Deposit, you can take advantage of competitive NRE FD rates. The rates typically vary across banks and depend on the investment amount and tenure of the deposit.


The principal amount invested by an NRI in this FD and the interest earned is freely and fully repatriable to their country of residence overseas.


An NRE FD allows you to choose from investment tenures between one and ten years. In addition, the interest rate on your FD is affected by the deposit term. So, match your tenure with the interest rate and investment horizon to maximise your gains.

Tax benefits

The interest earned on your investments in India is usually subject to various taxes. However, if an NRI decides to open NRE FD, the interest earned on the principal sum is not subjected to taxes in India. Hence, opening this NRI Fixed Deposit can let you enjoy the convenience of growing your hard-earned money while taking advantage of the tax benefits.


The DICGC insures the NRE FD for up to Rs. 5 lakh.